Yahoo Sees Big Q4 Ad Gains

Yahoo reported a 67 percent increase in marketing services sales in the fourth quarter, thanks to strong demand for search and display advertising.

The Sunnyvale, CA, company said fourth-quarter revenue totaled $1.1 billion, up 62 percent from the year-ago period. Net income, excluding a one-time sale, reached $187 million, more than double the $75 million posted in the 2003 period.

Online advertising again led the way for Yahoo. The firm's marketing services sales were $911 million, compared with $545 million in the fourth quarter a year earlier. Yahoo said its ad sales grew in both display advertising and search listings from its Overture Services unit.

Yahoo's solid financial performance was widely expected, following reports of strong demand for search marketing and display advertising during the holiday season.

"They've done very well," Jeff Lanctot, vice president of media for Avenue A/Razorfish, said yesterday prior to the earnings announcement. "They know they're in the catbird seat in a number of areas."

Brian Morrissey covers online marketing and advertising, including e-mail marketing and paid search, for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters